Ex-WorldCom CEO Ebbers begins jail term today

Former WorldCom Inc. chief executive Bernard Ebbers is scheduled to report to a federal prison today to begin a 25-year sentence related to his role in the accounting misstatements that led to the telecommunications giant’s bankruptcy.

Ebbers was convicted in March 2005 of one count of conspiracy to commit securities fraud, one count of securities fraud and seven counts of false filing with the U.S. Securities and Exchange Commission (SEC). In July, an appeals court upheld his conviction and sentence.

Ebbers has been ordered to report to prison by 2 p.m. EST Tuesday, according to the U.S. Attorney’s Office for the Southern District of New York. An inmate’s federal prison assignment is not public information until after he’s jailed, said a spokeswoman for the U.S. Department of Justice’s Bureau of Prisons.

The indictment against Ebbers charged that in 2000 he took part in a scheme to falsely inflate revenue and the price of WorldCom’s stock. Ebbers said he didn’t know of the financial irregularities.

WorldCom, which later changed its name to MCI Inc., filed for bankruptcy in July 2002 after disclosing that employees falsified records to inflate revenue. In April 2004, MCI agreed to a $750 million settlement for accounting irregularities with the SEC.

Verizon Communications Inc. purchased MCI in a deal worth $8.5 billion in cash and stock that closed in January.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

Featured Articles

ADaPT connects employers with highly skilled young workers

Help wanted. That’s what many tech companies across Canada are saying, and research shows...

Unlocking Transformation: IoT and Generative AI Powered by Cloud

Amidst economic fluctuations and disruptive forces, Canadian businesses are steering through uncharted waters. To...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now